VISA Updating Their Transaction Integrity Fee
Today, the VISA Integrity Fee is charged when a merchant processes a U.S. Domestic VISA debit or prepaid card and it doesn’t qualify for Customer Payment Service (CPS) interchange. As of April 13, 2018, VISA will update the criteria to also assess the fee when you process a credit product, including consumer, corporate, purchasing and business and it does not qualify for CPS interchange.
U.S. merchants will see a new fee on their merchant reports to represent when a merchant has been charged for a credit card product, and the existing fee will be renamed to clearly represent when it applies to debit or prepaid. Here are the details:
Transaction Integrity – Credit $ .10
Transaction Integrity – Debit/PP* $ .10
Previously named Transaction Integrity Fee
Effective with April 1, 2018 transactions, if a merchant processes customer not present, unattended terminal (excluding Automated Fuel Dispensers), or fast food restaurant transactions, your fee may change depending on their tier level. For more information, please contact your payment processor.
What is the Visa Transaction Integrity Fee and How Can I Avoid It?
Today, the Primary CPS qualifications for Card Present Debit & Prepaid:
- Cardholder and card present, signature obtained, single electronic authorization, merchant name, city, and state included in authorization, read & transmit complete magnetic stripe, transaction settled within 1 day of authorization, authorization response data included in settled transaction. Clearing amount must equal authorization amount except for the following sic codes: 4121 (Taxicabs/Limousines), 5813 (Bars-Taverns), 7230 (Barber and Beauty Shops), 7298 (Health and Beauty Spas).
How can I Avoid the Transaction Integrity Fee on Card Present Sales?
- Always settle your transactions within one day of authorization. This means always batch out your terminal, POS, or payment gateway at the end of every day’s business. We recommend making settlement part of your end-of-day cash out procedure and having your terminal programmed for either terminal or host-based auto settlement as a back-up.
- Always read & transmit complete magnetic stripe data. If you have an older terminal or you frequently must key in sales because it can’t read the card when you swipe, or it takes several swipes to get a card to go through, consider either cleaning the card reader or upgrading to a new terminal. Card readers can be cleaned using Card Reader Cleaning Cards, or you can try wrapping a dollar bill around a card.
- Always authorize and settle for the same amount. If a customer changes an order before the day’s settlement, always void the original order and start over. Do not adjust the amount of the existing order. If you are processing Retail with Tips because your Merchant Category Code isn’t exempt (like Dog Grooming) consider getting the tip amount prior to authorization so you don’t have to perform Tip Adjust. If you are processing more than one MCC under a single merchant ID, and one of the MCC would be exempt (like a Hotel with a Restaurant) consider getting an additional merchant ID for the exempt MCC.
- When terminal asks for zip code verification – cashiers should never over-ride the prompt!